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Last Updated on: 23 June, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of L&T Technology Services Ltd

About the Company - L&T Technology Services Ltd

L&T Technology Services Ltd. is a Public Limited Listed company incorporated on 14/06/2012 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L72900MH2012PLC232169 and registration number is 232169. Currently Company is involved in the business activities of Other information technology and computer service activities n.e.c. Company’s Total Operating Revenue is Rs. 5873.70 Cr. and Equity Capital is Rs. 21.10 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
IT Enabled ServicesL&T House, Mumbai Maharashtra 400001investor@ltts.com
http://www.ltts.com
Management
NamePosition Held
Mr. A M NaikFounder Chairman
Mr. S N SubrahmanyanVice Chairman
Mr. Amit ChadhaManaging Director & CEO
Mr. Abhishek SinhaWhole Time Director & COO
Dr. Keshab PandaNon Executive Director
Mr. Sudip BanerjeeIndependent Director
Mr. Narayanan KumarIndependent Director
Mr. Luis MirandaIndependent Director
Ms. Apurva PurohitIndependent Director
Mr. R ChandrasekaranIndependent Director
Ms. Aruna SundararajanIndependent Director
Mr. Alind SaxenaPresident & Wholetime Director

Basic Stock Data of L&T Technology Services Ltd

Last Updated: June 17, 2024, 8:27 pm

Market Cap 51,248 Cr.
Current Price 4,846
High / Low5,885/3,755
Stock P/E39.8
Book Value 504
Dividend Yield1.03 %
ROCE33.6 %
ROE26.4 %
Face Value 2.00
PEG Ratio4.19

L&T Technology Services Ltd Quarterly Results

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales1,4011,4401,5181,6081,6881,7562,0062,2822,1572,3712,3012,3862,422
Expenses1,1251,1471,2011,2581,3201,3761,5981,8441,7211,8901,8491,9111,934
Operating Profit276293318349367380408437436480453476488
OPM %20%20%21%22%22%22%20%19%20%20%20%20%20%
Other Income49354429374241387450484162
Interest11121111111011111211121313
Depreciation62545553535359595957576872
Profit before tax251261296314340359379406439462431436466
Tax %25%25%27%27%27%27%27%26%32%26%28%28%28%
Net Profit187195217231250263276301298341312316337
EPS in Rs17.7218.5220.5821.8723.5924.8326.0928.4128.1132.2029.4429.8431.79

Last Updated: June 7, 2024, 9:02 am

L&T Technology Services Ltd Quarterly Chart

L&T Technology Services Ltd Profit & Loss

Last Updated: June 2, 2024, 12:14 am

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales2,6193,0663,2483,7475,0785,6195,4506,5708,0149,480
Expenses2,2202,5472,6633,1724,1644,5094,4425,1556,3037,584
Operating Profit3995195865769151,1101,0071,4151,7111,896
OPM %15%17%18%15%18%20%18%22%21%20%
Other Income258458193223209154152208202
Interest322223646444449
Depreciation48596289104183218214232254
Profit before tax3725425796781,0311,1008971,3091,6441,795
Tax %16%23%27%25%26%25%26%27%29%
Net Profit3114194255077688226669611,1741,306
EPS in Rs10.3655.8841.7849.3973.6178.3363.1490.68110.77123.29
Dividend Payout %50%26%29%32%29%27%35%39%41%

L&T Technology Services Ltd Profit & Loss Yearly Chart

L&T Technology Services Ltd Growth

Compounded Sales Growth
10 Years:%
5 Years:14%
3 Years:21%
TTM:9%
Compounded Profit Growth
10 Years:%
5 Years:11%
3 Years:26%
TTM:6%
Stock Price CAGR
10 Years:%
5 Years:23%
3 Years:20%
1 Year:24%
Return on Equity
10 Years:%
5 Years:26%
3 Years:26%
Last Year:26%

Last Updated: June 17, 2024, 2:57 pm

L&T Technology Services Ltd Balance Sheet

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital3003002020212121212121
Reserves27661,4651,9162,4582,7483,4524,1414,9304,768
Preference Capital75000000000
Borrowings219196102707030480477454551
Other Liabilities1,2576816446968021,5041,1131,4381,4982,371
Total Liabilities1,7781,9422,2322,7023,3524,3035,0666,0776,9047,711
Fixed Assets5696216147097801,1741,2821,2831,2941,385
CWIP014200912106121
Investments0561952215756421,5151,4782,2841,320
Other Assets1,2081,2521,4211,7721,9972,4792,2573,3073,3194,884
Total Assets1,7781,9422,2322,7023,3524,3035,0666,0776,9047,711

L&T Technology Services Ltd Reserves and Borrowings Chart

L&T Technology Services Ltd Cash Flow

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 2895443884098066381,3321,0061,305
Cash from Investing Activity -667-176-178-196-509-222-1,005-448-572
Cash from Financing Activity 464-383-222-132-245-406-363-498-444
Net Cash Flow86-15-12815210-3660290

L&T Technology Services Ltd Financial Efficiency Indicators

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days968680947690839479
Inventory Days
Days Payable
Cash Conversion Cycle968680947690839479
Working Capital Days674160775768495241
ROCE %43%41%38%45%43%27%31%33%

L&T Technology Services Ltd Financial Efficiency Indicators Chart

L&T Technology Services Ltd Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters74.23%74.15%73.93%73.90%73.88%73.87%73.85%73.85%73.80%73.77%73.75%73.74%
FIIs8.92%9.50%9.23%7.14%6.34%6.04%7.22%6.69%5.31%5.89%5.63%5.52%
DIIs6.68%6.14%5.42%5.20%4.08%8.00%7.69%8.41%10.37%10.77%11.33%12.09%
Public10.17%10.21%11.41%13.76%15.69%12.10%11.24%11.06%10.51%9.55%9.29%8.65%
No. of Shareholders1,25,9201,46,8931,77,8392,22,1962,76,7793,05,8812,88,9612,97,5692,84,6462,66,5712,57,3962,43,374

L&T Technology Services Ltd Shareholding Pattern Chart

No. of L&T Technology Services Ltd Shareholders

L&T Technology Services Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
SBI Dividend Yield Fund320,0002.57133.97228,0452024-06-1740.32%
UTI Mid Cap Fund228,0451.0995.48228,0452024-06-170%
PGIM India Midcap Opportunities Fund228,0001.0595.46228,0452024-06-17-0.02%
SBI Magnum Equity ESG Fund200,0001.7283.73228,0452024-06-17-12.3%
ICICI Prudential Technology Fund148,2160.5762.05228,0452024-06-17-35.01%
Motilal Oswal Focused Fund129,3813.2854.17228,0452024-06-17-43.27%
HDFC Capital Builder Value Fund - Regular Plan120,7940.950.57228,0452024-06-17-47.03%
SBI Retirement Benefit Fund - Aggressive Plan111,0002.6446.47228,0452024-06-17-51.33%
Samco Flexi Cap Fund90,0005.1137.68228,0452024-06-17-60.53%
Edelweiss Balanced Advantage Fund83,4210.3734.93228,0452024-06-17-63.42%

L&T Technology Services Ltd ROCE Trend

L&T Technology Services Ltd EPS Trend

L&T Technology Services Ltd Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)123.24110.8090.9263.3278.56
Diluted EPS (Rs.)123.00110.4890.7462.9077.70
Cash EPS (Rs.)148.86133.23111.3784.2796.20
Book Value[Excl.RevalReserv]/Share (Rs.)504.51470.99395.85331.73265.60
Book Value[Incl.RevalReserv]/Share (Rs.)504.51470.99395.85331.73265.60
Revenue From Operations / Share (Rs.)910.12759.58622.72519.02537.71
PBDIT / Share (Rs.)200.59181.87148.56110.58126.28
PBIT / Share (Rs.)174.97159.92128.2489.79108.78
PBT / Share (Rs.)170.17155.80124.0985.46105.28
Net Profit / Share (Rs.)123.24111.2991.0563.4878.70
NP After MI And SOA / Share (Rs.)122.99110.8890.7163.1778.33
PBDIT Margin (%)22.0423.9423.8521.3023.48
PBIT Margin (%)19.2221.0520.5917.3020.22
PBT Margin (%)18.6920.5119.9216.4619.57
Net Profit Margin (%)13.5414.6514.6212.2314.63
NP After MI And SOA Margin (%)13.5114.5914.5612.1714.56
Return on Networth / Equity (%)24.4723.6222.9919.0929.56
Return on Capital Employeed (%)31.1631.2228.7123.7234.82
Return On Assets (%)15.3516.9115.7113.0719.02
Total Debt / Equity (X)0.000.000.000.000.01
Asset Turnover Ratio (%)1.251.131.091.091.39
Current Ratio (X)2.463.403.143.192.80
Quick Ratio (X)2.453.403.143.192.80
Dividend Payout Ratio (NP) (%)0.0027.0737.9633.1326.70
Dividend Payout Ratio (CP) (%)0.0022.6031.0124.9321.82
Earning Retention Ratio (%)0.0072.9362.0466.8773.30
Cash Earning Retention Ratio (%)0.0077.4068.9975.0778.18
Interest Coverage Ratio (X)41.7744.1135.8625.5236.15
Interest Coverage Ratio (Post Tax) (X)26.6627.9922.9815.6523.53
Enterprise Value (Cr.)56720.8534950.1853166.1327652.8011940.38
EV / Net Operating Revenue (X)5.884.368.095.072.12
EV / EBITDA (X)26.6818.2233.9223.829.05
MarketCap / Net Operating Revenue (X)6.024.458.195.122.16
Retention Ratios (%)0.0072.9262.0366.8673.29
Price / BV (X)10.907.2012.938.034.39
Price / Net Operating Revenue (X)6.024.458.195.122.16
EarningsYield0.020.030.010.020.06

L&T Technology Services Ltd Profitability Ratios (%)

L&T Technology Services Ltd Liquidity Ratios

L&T Technology Services Ltd Liquidity Ratios (%)

L&T Technology Services Ltd Interest Coverage Ratios (%)

L&T Technology Services Ltd Valuation Ratios

Fair Value

Fair Value: 5,350.17

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

Undervalued: 10.40% compared to the current price 4846

Intrinsic Value: 5,858.25

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 20.89% compared to the current price ₹4846

Last 5 Year EPS CAGR: 9.50%

*Investments are subject to market risks

Strength and Weakness of L&T Technology Services Ltd Stock

StrengthWeakness
  1. The stock has a high average ROCE of 33.44%, which is a positive sign.
  2. The company has higher reserves (2,664.60 cr) compared to borrowings (75.00 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (4.90 cr) and profit (307.30 cr) over the years.
  1. The stock has a high average Working Capital Days of 56.89, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 86.44, which may not be favorable.

FAQ

What is the latest fair value of L&T Technology Services Ltd?

The latest fair value of L&T Technology Services Ltd is ₹5350.17.

What is the Market Cap of L&T Technology Services Ltd?

The Market Cap of L&T Technology Services Ltd is 51,248 Cr..

What is the current Stock Price of L&T Technology Services Ltd as on 23 June 2024?

The current stock price of L&T Technology Services Ltd as on 23 June 2024 is ₹4,846.

What is the High / Low of L&T Technology Services Ltd stocks in FY 2024?

In FY 2024, the High / Low of L&T Technology Services Ltd stocks is 5,885/3,755.

What is the Stock P/E of L&T Technology Services Ltd?

The Stock P/E of L&T Technology Services Ltd is 39.8.

What is the Book Value of L&T Technology Services Ltd?

The Book Value of L&T Technology Services Ltd is 504.

What is the Dividend Yield of L&T Technology Services Ltd?

The Dividend Yield of L&T Technology Services Ltd is 1.03 %.

What is the ROCE of L&T Technology Services Ltd?

The ROCE of L&T Technology Services Ltd is 33.6 %.

What is the ROE of L&T Technology Services Ltd?

The ROE of L&T Technology Services Ltd is 26.4 %.

What is the Face Value of L&T Technology Services Ltd?

The Face Value of L&T Technology Services Ltd is 2.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in L&T Technology Services Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE